Ashurst has advised M&G Asia Property Fund, a major Asian property investor based in Singapore, on the acquisition and leaseback of two boutique "Art Series" hotels located in Melbourne (known as "The Cullen" and "The Olsen"), with a deal value of approximately A$150 million. 

The Cullen on Prahran's Commercial Road and The Olsen on South Yarra's Chapel Street have 343 hotel suites between the two, and generate an initial base rent of $10.8m a year with other facilities including 1565m in retail space and basement parking for 123 cars.

The two hotels come with a 30 year head lease to the Art Series Hotel Group, with options, which is a wholly-owned subsidiary of Asian Pacific Group.

Lead partner on the transaction John Stawyskyj said: "The project was significant as the first major real estate investment by the M&G Asia Property Fund in Australia and involved complex negotiations of a leaseback arrangement from the current hotel owner/operator.  This is also one of only two hotel sale and leaseback transactions in Australia in the past five years, and Ashurst have acted on both of these transactions."

John was assisted by senior associate Lindy Randall (Real Estate); partner Jason Cornwall-Jones (Real Estate Victoria); partner Robert Jamieson and senior associate Jane Hall (Planning); partner Barbara Phair and senior associate Elke Scevak (Tax).